With the Federal Reserve committing to buy $85 billion worth of securities every more -- including $40 billion worth of mortgages -- until the market recovers, while also announcing it will keep interest rates at extreme but artificially low rates until at least 2015, the market jumped 206 points, or 1.6%. But some companies couldn't come to the party and instead fell, some even dropping by double-digit percentages.
So let's see whether they had good reason to tumble, as sometimes panic-fueled declines can actually lead to excellent buying opportunities.
For crying out loud
Online review site Yelp
The case of Scott Van Duzer underscores how companies that rely on social networking are at the mercy of forces beyond their control, which isn't good. The Florida pizzeria owner who gave President Obama a bear hug of support saw his Yelp page inundated with bad reviews, and while there has been a groundswell of support for him in the aftermath, it highlights the questionability of what it is you're reading.
It's been noted that even Amazon.com is subject to fake reviews, but following as it does the news that maybe more than 80 million Facebook
I actually think it's less of a problem for a Yelp than for Facebook, as it will probably only have such high-profile instances on rare occasions, but I also think the stock is more just part of a social-networking bubble that won't last, which is why I've rated Yelp to underperform the markets on Motley Fool CAPS. But let me know in the comments section below if you think there's a reason Yelp should be able to grow beyond its current valuation.
Medical billing services provider Accretive Health
Earlier this summer, the bill collector agreed to settle a state case against it that led to a $2.5 million fine and an agreement not to do business in Minnesota for two years. With Illinois also trying to get it to stop its bill collecting in that state, it may find fewer hospitals elsewhere that want to be associated with it.
Even so, Wall Street apparently believes that despite all else, it remains effective at what it does, and of the analysts that CAPS tracks, four have weighed in on the stock and believe it will outperform the indexes. You can offer up your own opinion on Accretive Health and its collection practices in the comments box below.
Running out of power
Previously I likened Skullcandy
That doesn't make for a good long-term investment, though, so I'm maintaining my underperform rating on CAPS, but Skullcandy still has its adherents, so let me know below if you think its future will be more lasting than cotton candy on the tongue.
Ready for a resurrection
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Fool contributor Rich Duprey owns shares of Apple, but he holds no other position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of Skullcandy, Amazon.com, Apple, and Facebook. Motley Fool newsletter services have recommended buying shares of Amazon.com, Apple, and Facebook and creating a bull call spread position in Apple. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.